'World's tallest' developer gets 64-months in prison

(Crain's) -- A federal judge on Thursday sentenced Scott K. Toberman to five years and four months in prison in connection with the developer's admitted scheme to embezzle about $2 million from investors.

As a high-flying developer in the late '90s, Mr. Toberman made a fanciful proposal to build the world's tallest building in downtown Chicago. But today he is "finished financially," his court-appointed attorney, John L. Sullivan of Winnetka, said in a court filing before the sentencing hearing.

Mr. Toberman, who currently lives in Smyrna, Ga., is scheduled to surrender on July 6, a spokesman for the U.S. Attorney's office said. In July, Mr. Toberman, 54, pleaded guilty in U.S. District Court in Chicago to one count of wire fraud. Under his plea agreement, he was eligible for a sentence of 57 to 71 months.

In 1999, he gained international celebrity by announcing plans for a 112-story skyscraper on a site known at the time as 7 S. Dearborn St.

Over the last five years, he has been locked in bitter litigation with his former investors in other projects. His desire to continue to fight their claims made it difficult for Mr. Toberman to plead guilty in the criminal case, his attorney said in the court filing.

"Moral right and wrong no longer had meaning for him," Mr. Sullivan said.

But Mr. Toberman had a change of heart after a document was unearthed that vindicated him of one of the charges, Mr. Sullivan said.